UK drivers desert container runs for sectors that deliver better pay and conditions
Truckers appear to be abandoning container loads for the more-lucrative delivery sector, as the battle ...
© Diane Picard
Transport Intelligence reports:
The Otto Group has sold a controlling stake in the parcel carrier Hermes UK, along with smaller parts of its last-mile operations in Germany.
The London-based private equity firm Advent International has effectively bought a “75% shareholding in Hermes UK, Advent will also acquire a 25% stake in Hermes Germany, which includes other Hermes Germany Group companies including BorderGuru and a share in the ParcelLock joint venture.”
The deal, announced yesterday (Monday, August 10), is structured so that Hermes is established as an independent company, with the statement from Advent commenting that it will “partner with the current management team to acquire a 75% stake in Hermes UK. Otto Group will continue to own 25% of the company… The management of Hermes UK will continue to lead the business as an independent company, with ‘business as usual’ for employees, suppliers and customers.”
Neither of the parties has disclosed the size of the transaction, however, it is rumoured that the deal values this new Hermes company at £900m (US$1.17bn) including debt.
Otto Group has been struggling with Hermes for some time, with the German retail conglomerate indicating earlier in the year that it was looking a for “strategic partners”.
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You read the PR here: “Otto Group and Advent International announce partnership for Hermes“.
Our previous coverage here: “Hermes won’t be FedEx’s next TNT Express (hopefully)“.
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